Despite government attempts to automatically enrol millions in workplace pension savings, 44% admitted they were not saving their recommended 12% of wages towards retirement.

Miserable outlook

Just over half (51%) confessed they will work at least part-time in retirement, with 18% admitting that carrying on working is a necessity rather than a choice.

Only one in four (24%) expect to retire by the age of 65 years old.

Only 5% of 18 to 24-year-olds can see retiring at 65 a possibility, compared with 11% of 25 to 34-year-olds and 16% of 35 to 44-year-olds.

A fifth will work on past retirement because they have not saved enough cash to give up work.

A third of 25 to 54-year-olds are concerned they did not save enough when they were younger and 39% worry they will run out of money after they have retired.

Cliff-edge retirement

Robert Cochran, a retirement expert at Scottish Widows, said: “While the idea of a cliff-edge retirement – when people around the age of 60 to 65 give up work once and for all – has been disappearing in recent years, our research clearly shows this is a necessity rather than a choice for too many workers.

“Auto-enrolment has been a great success in kick-starting the savings habit for millions, and the increase in minimum contributions from this month should, in the long-term, mean that more people have valuable pension funds to live off as they approach later life.

“With life expectancy expected to continue rising, it’s worthwhile remembering that saving for the future doesn’t need to stop at ‘retirement age’. Only a third of people who expect to carry on working past retirement age think they will continue to pay into a pension – over time this number is likely to go up.”

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